Q392
Costs that behaves as irrelevant costs in process of decision making are classified as
A.
past costs
AnswerB.
future costs
C.
expected costs
D.
sunk costs
Answer: Option A
Solution
Answer: Option A
Solution:
Costs that behaves as irrelevant costs in process of decision making are classified as past costs. A past cost is money that has already been spent. These funds cannot be recovered, so the related cost is irrelevant for decision-making purposes. A past cost is also known as a sunk cost.